Direct EU Taxation.
The FOC â€œMyth Seriesâ€ states clearly that â€œWe control tax and social securityâ€
The Government negotiated successfully to keep a national veto over tax proposals. Social Security proposals are subject to an effective veto through a national ’emergency brake’ mechanism allowing any Member State to refer a proposed law to the European Council (the body composed of national heads of state/government) for decision by consensus.
Of course, this means that direct taxation should specifically be out of bounds to the ECJ, according to the treaties. But itâ€™s clear from the number of cases the Commission has brought recently, that both the Court and Commission are intent on brushing that rule aside.
Their ultimate aim is nothing less than pan-European Union tax harmonisation. They even have a Commissioner for duties and taxes Laszlo Kovacs, who is pushing to harmonize rules on VAT among the new and old member states of the EU.… Read the rest